The presence of circular causality in a region through factor returns is studied in a general equilibrium model in which firms producing final products engage in oligopolistic competition. The intermediate input is produced by capital and labor with a constant returns to scale technology. If the...

In ancient China, a ruler needed to handle both internal rebellions and external threats. To decrease the possibility of internal rebellions, a ruler could organize the government to establish the division of power among ministers. While effective in preventing internal rebellions, this approach...

This paper studies the implications of international trade in a general equilibrium model in which the returns to scale are internal and firms choose their production technologies. The production function generated from internal increasing returns and the choice of technology leads to returns to...

This article studies the determinants of a firm's organizational form in the context of an imperfectly competitive industry. There are two kinds of organizational forms: the multidivisional form (M-form) and the unitary form (U-form). An M-form firm suffers from ignorance of demand externalities...